Committee advances V‑HEARTH planning in H.91; seeks faster reports, advisory committee and funding to shift from hotel‑based shelter

The Health & Welfare committee on April 22 reviewed H.91, legislation that would codify a statewide V‑HEARTH program to coordinate community action agencies, regional needs assessments and a multi‑phase implementation plan for homelessness services.

H.91 would require Community Action Agencies (CAAs) to develop regional needs assessments and planning processes—using data such as Vermont’s point‑in‑time counts, coordinated‑entry assessments and community input—and to submit those plans to the Department for aggregation and reporting to policy committees. The draft sets guidance for hotel and motel use as emergency shelter, requires compliance with the Department of Health lodging rules and Vermont Fire and Building Safety Code, and asks the department to propose hotel/motel rates annually as part of its budget.

Funding and timeline: the bill as described in committee includes a one‑time FY26 appropriation of $10,000,000 from the general fund: $6.5 million to the Department for distribution to CAAs and their network, $500,000 for contractual and system‑transformation assistance, and $3,000,000 for continued development of shelter capacity. Committee members emphasized the desire to accelerate planning and implementation and asked whether portions of the advisory work and some implementation benchmarks could be returned before the bill’s February 1 report date.

Advisory committee and eligibility: the bill establishes an advisory committee to advise the Commissioner of DCF and CAAs on design, implementation and transition to V‑HEARTH. Membership must reflect demographic diversity and include five people with lived experience of homelessness, representatives from each CAA, two or more shelter providers, a Chittenden County Homeless Alliance appointee and Continuum of Care representation; the draft authorized subcommittees and set a termination date for the committee (committee text indicates July 1, 2029).

Hotel/motel usage and negotiation: H.91 directs CAAs to pursue block agreements with hotels and motels "to the extent possible," to negotiate access for case management and supportive services, and to avoid paying per‑room rates that exceed the General Assembly‑approved rate. The bill also asks the advisory and implementation work to consider whether emergency shelter should require household participation in case management, whether there should be night limits for hotel stays, whether households should make financial contributions, and how to prioritize access equitably.

Committee members and stakeholders raised operational concerns about staffing and service needs. Several members warned that shifting management to CAAs will require case managers, mental health and medical linkages, and stable funding. Amy Scholenberger, testifying for BCAP (the statewide CAAs organization), said the budget request she reviewed is meant for transition work rather than full implementation: "The estimate that was provided was envisioning a transition. So the budget is for the transition, not for the implementation." She told the committee the $6.3 million figure proposed to stand up planning is intended to help CAAs develop capacity and financial systems to receive state funding.

Committee members also discussed concurrency with GA emergency assistance programs and the governor’s executive order. Some members urged earlier reporting (October or December) on specific items rather than waiting until the February 1 date set in the bill, noting the Senate budget timeline. Members asked CAAs and the administration for cost estimates to "stand up" the program and to identify services and staffing needs.

H.13 technical amendments: later in the session the Department of Vermont Health Access asked the committee to adopt technical and clarifying amendments to H.13 (a separate bill on rate review and provider payment methods). Alex McCracken, Department of Vermont Health Access, said the agency proposes editing language "from determine to assess" (later agreed to use the word "calculate" and to add a clarifying phrase "for informational purposes") and recommended removing a provision on "extraordinary financial relief" that the agency said applies only to nursing homes and PNMIs. Committee members generally accepted procedural changes and asked legislative counsel to draft a short amendment that would replace the word "determine" with "calculate" and to change references to "extraordinary financial relief" to "provider stabilization request" to reduce confusion.

Ending: The committee made no final votes on H.91 or the H.13 technical amendments during the hearing but directed agencies and CAAs to supply more detailed implementation and cost information, asked for earlier reporting where feasible, and moved to adopt technical clarifications to the H.13 language in a committee amendment.